Taiwan Population: 23,464,787

First inhabited by Austronesian people, Taiwan became home to Han immigrants beginning in the late Ming Dynasty (17th century). In 1895, military defeat forced China's Qing Dynasty to cede Taiwan to Japan, which governed Taiwan for 50 years. Taiwan came under Chinese Nationalist control after World War II. In the four years leading to the communist victory on the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government under the 1947 constitution drawn up for all of China. The Nationalist government established authoritarian rule under martial law in 1948. Beginning in the late 1970s, the ruling authorities gradually democratized and incorporated the local population within the governing structure. This process expanded rapidly in the 1980s, with the founding of the first opposition party (the Democratic Progressive Party or DPP) in 1986 and the lifting of martial law in 1987. Taiwan held its first direct presidential election in 1996. In 2000, Taiwan underwent its first peaceful transfer of power from the Nationalist Party (Kuomintang or KMT) to the DPP. Throughout this period, the island prospered and became one of East Asia's economic "Tigers." The dominant political issues continue to be management of sensitive relations between Taiwan and China - specifically the question of Taiwan's sovereignty - as well as domestic priorities for economic reform and growth.

conventional long form: none conventional short form: Taiwan local long form: none local short form: Taiwan former: Formosa etymology: "Tayowan" was the name of the coastal sandbank where the Dutch erected their colonial headquarters on the island in the 17th century; the former name "Formosa" means "beautiful" in Portuguese

note: Taiwan uses a variety of romanization systems; while a modified Wade-Giles system still dominates, the city of Taipei has adopted a Pinyin romanization for street and place names within its boundaries; other local authorities use different romanization systems

Independence:

National holiday:

Republic Day (Anniversary of the Chinese Revolution), 10 October (1911)

head of government: Premier LIN Chuan (President of the Executive Yuan) (since 20 May 2016); Vice Premier LIN Hsi-yao, Vice President of the Executive Yuan (since 20 May 2016)

cabinet: Executive Yuan - ministers appointed by president on recommendation of premier elections/appointments: president and vice president directly elected on the same ballot by simple majority popular vote for a 4-year term (eligible for a second term); election last held on 16 January 2016 (next to be held in 2020); premier appointed by the president; vice premiers appointed by the president on the recommendation of the premier

highest court(s): Supreme Court (consists of the court president, vice president, and approximately 100 judges organized into 8 civil and 12 criminal divisions, each with a division chief justice and 4 associate justices); Constitutional Court (consists of the court president, vice president, and 13 justices) judge selection and term of office: Supreme Court justices appointed by the president; Constitutional Court justices appointed by the president with approval of the Legislative Yuan; Supreme Court justices appointed for life; Constitutional Court justices appointed for 8-year terms with half the membership renewed every 4 years

subordinate courts: high courts; district courts; hierarchy of administrative courts

Political parties and leaders:

Democratic Progressive Party or DPP [TSAI Ing-wen] Kuomintang or KMT (Nationalist Party) [HUNG Hsiu-chu] New Power Party or NPP [HUANG Kuo-chang] Non-Partisan Solidarity Union or NPSU [LIN Pin-kuan] People First Party or PFP [James SOONG Chu-yu] Taiwan Solidarity Union or TSU [HUANG Kun-huei]

Political pressure groups and leaders:

other: environmental groups; independence movement; various business groups note: public opinion polls consistently show most Taiwanese support maintaining Taiwan's status quo; advocates of Taiwan independence oppose unification with mainland China; most advocates of eventual unification predicate their goal on the democratic transformation of the mainland

note: adopted 1930; also the song of the Kuomintang Party; it is informally known as "San Min Chu I" or "San Min Zhu Yi" (Three Principles of the People); because of political pressure from China, "Guo Qi Ge" (National Banner Song) is used at international events rather than the official anthem of Taiwan; the "National Banner Song" has gained popularity in Taiwan and is commonly used during flag raisings

Diplomatic representation in the US:

none; commercial and cultural relations with the people in the United States are maintained through an unofficial instrumentality, the Taipei Economic and Cultural Representative Office in the United States (TECRO), a private nonprofit corporation that performs citizen and consular services similar to those at diplomatic posts representative: KAO Shuo-tai (a.k.a. Stanley KAO) (since 5 June 2016) office: 4201 Wisconsin Avenue NW, Washington, DC 20016 telephone: [1] 202 895-1800 Taipei Economic and Cultural Offices (branch offices): Atlanta, Boston, Chicago, Denver (CO), Hagatna (Guam), Houston, Honolulu, Los Angeles, Miami, New York, San Francisco, Seattle

Diplomatic representation from the US:

none; commercial and cultural relations with the people on Taiwan are maintained through an unofficial instrumentality, the American Institute in Taiwan (AIT), a private nonprofit corporation that performs citizen and consular services similar to those at diplomatic posts office: telephone: [1] [886] (02) 2162-2000 FAX: [1] [886] (02) 2162-2251 other offices: Kaohsiung (Branch Office)

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance on investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as of the conclusion of President MA's second and final term in May 2016. MA portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks, and has also expressed interest in Taiwan joining the Trans-Pacific Partnership. Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025. The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island and has also secured greater market access for its investors in the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese Renminbi (RMB) and the New Taiwan Dollar across the Strait, which has helped Taiwan develop into a local RMB hub. Closer economic links with the mainland bring opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. Domestic economic issues loomed large in public debate ahead of the 16 January 2016 presidential and legislative elections, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.

starting with those born in 1994, males 18-36 years of age may volunteer for military service or must complete 4 months of compulsory military training (or substitute civil service in some cases); women may enlist; women in Air Force service are restricted to noncombat roles; for men born before December 1993, compulsory service (military or civil) is 1 year; for 8 years after discharge, men are subject to training recall four times for periods not to exceed 20 days (2016)

involved in complex dispute with Brunei, China, Malaysia, the Philippines, and Vietnam over the Spratly Islands, and with China and the Philippines over Scarborough Reef; the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions but falls short of a legally binding "code of conduct" desired by several of the disputants; Paracel Islands are occupied by China, but claimed by Taiwan and Vietnam; in 2003, China and Taiwan became more vocal in rejecting both Japan's claims to the uninhabited islands of the Senkaku-shoto (Diaoyu Tai) and Japan's unilaterally declared exclusive economic zone in the East China Sea where all parties engage in hydrocarbon prospecting

Illicit drugs:

regional transit point for heroin, methamphetamine, and precursor chemicals; transshipment point for drugs to Japan; major problem with domestic consumption of methamphetamine and heroin; rising problems with use of ketamine and club drugs